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Technology Stocks : Apple Inc.
AAPL 271.84-0.4%Dec 31 3:59 PM EST

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To: Cogito who wrote (44807)5/27/2005 2:19:37 AM
From: slacker711  Read Replies (1) of 213177
 
The article doesn't say anything about pricing. I don't think there's any reason to assume that there will be a Shuffle priced higher than a Mini.

The spot pricing for one 8Gb (1GB) of NAND flash is currrently a little above $50. The 1GB Shuffle sells for $150. The profit margins on the Shuffle are absolutely awesome...

dramexchange.com

The current 4GB iPod Mini sells for $190 on Amazon. A $100 premium to the Mini would give Apple the same gross profit per Shuffle but would obviously erode the margins. I am a big believer that flash will eventually take over the majority of MP3 player sales, but the pricing hasnt dropped enough to make 4GB flash players mainstream.

The interesting question is if Apple expands the flash iPod line. Do they eventually add a screen to the Shuffle? The more storage capacity the unit has, the more a screen becomes a necessity.

Slacker
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